Instead HMRC said it was ‘developing an approach to the future administration of corporation tax that is suited to the varying needs of the diverse corporation tax population’.

Nothing more is added to describe the population other than it ‘includes a very wide range of entities’, referencing small business, multinationals, charities and property management businesses.

MTD for Income Tax is still due to go ahead from April 2026 for those earning over £50,000 working as self employed, sole traders and landlords.

Adam Craggs, head of tax, investigations and financial crime at RPC said: ‘HMRC’s decision to scrap MTD for Corporation Tax is not entirely unexpected. The initiative had faced significant technical and practical challenges, and the compliance burden on smaller companies was always going to be disproportionate to the likely benefits.

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